Really exciting @TeslaMotors announcement coming on Thursday. Am going to put my money where my mouth is in v major way.
Read it online: http://twitter.com/elonmusk/status/316260319360061440
Care to speculate?
Model X Beta reveal ?
Hoping for Superchargers, but think it might be something more on the financial side.
Q1 results: exceeding sales AND margin projections?
"Am going to put my money" means his own money, not Tesla's.
It means another raise in which Elon has to go in in a major way. Because the one 6 months ago, which "was not really needed" but only for "extra cushion" and "future models' development" melted away?
I may be too pessimistic, but it smells bad to me :(
Q1 results aren't until May. I think it may be something like what SeekingAlpha is reporting. TSLA will do a big secondary to paydown/off their loan from the US Government and Elon will buy a big part of it. If he's putting his "money where his mouth is", I don't think it will be superchargers, but another big investment in TSLA. Either way, it will be interesting and give me something to loook forward to as I wait for my Model S (Apr/May).
First Elon is going use his SpaceX pay to buy 50m worth of common stock (put money where is his mouth is). Then announce Tesla is going to increase production to two shifts (650-800per week) and a nationwide Supercharger network will be in place by December. Then the surprise "one more thing"... new supercharger tech will decrease charge time by 50%... 150 miles in 15 minutes, full charge from 0, in 30 minutes...
Nicu that was my first thought as well. Although I don't know if that would qualify as "really exciting" news for Tesla.
@ elguapo - paying a low interest early when you need a lot of resources to develop production, delivery system, superchargers, marketing / sales, customer communication, international expansion etc. would be a terrible inefficient use of cash; can you think of a worse use of $$$ ?
Why would Elon be excited about a secondary offering? He's excited because he has good news on some aspect of sales, technology development, or some sort of new partnership...
@ fluxemag - probably it will be sugarcoated in some exciting promise; given the cash situation, it is of course much better to paint it rosy and make it exciting; and obviously, if that $$$ is needed, they should not increase risks by waiting too long; not to mention that raising money above $35 / share is quite sweet :)
only that us investors will again wait for next turn to play again :(
I don't see how another offering could be "really exciting". Diluting shares, and printing more money is not a really exciting announcement, It's depressing. This will be technology-related somehow.
Or maybe he's going to announce he's got another cameo in the upcoming Ironman movie and he's actually going to put his money where is mouth is... maybe try to beat the record of 134 one dollar bills stuffed into mouth and a little bit in the throat...
World Green Car of the Year is being announced at the NY auto show.
@nicu I agree a secondary would be a terrible way to payoff he debt. I agree with everyone here that a secondary isn't "exciting" either. Any additional investment from Elon could, I think, make them look weak. Hard to tell here...
Tesla is being bought by Yugo - who will change the name to Yugo.
He will invest his own money in TSLA in some way. The question is how much money he can invest? $50M maybe? Or $100M?
How much is the NYT worth these days?
Going to buy Exxon and replace all the gas pumps with Superchargers.
It can only mean one thing. Tesla Motors is going to spend money to expand production capability either for MS or for future models.
Elon and many other visionaries delight in the idea/phrase "shut up!", and hopefully this announcement is yet another example.
"Electric vehicles are boring punishment cars for those who feel guilty about not having to walk everywhere"
"Shut up! The roadster is fast and sexy and still more efficient than your foul-smelling ICE car!"
"Uhm...electric cars are niche 'toy' cars that bored rich people buy to show off in"
"Shut up! The Model S is a four door sedan that is bigger and more practical than your BMW, leaves it in the dust, and STILL is better for the environment!"
"Er...uhm... ok. Electric cars are nice, but they're only commuter cars for city dwellers"
"Shut up! We now have superchargers that can put 150 miles in your battery while you take a half hour driving break!"
"Uhhmmm...well... it's still more expensive than my Toyota"
"Shut up! .... to be continued.
@Electron - that is a good one.
My guess is he will be investing in new battery technology and/or super capacitors as a new company (with partners) or as part of Tesla. The Tesla factory has so much space it makes sense to start using part of it.
Some time ago he speculated about putting SpaceX and Tesla under one holding company.
My guess is that Elon Musk is going to be eating money at the Tesla factory on a webcast.
It will be an enhancement to a product or service (e.g. we'll have 50 more superchargers operating by this year). No way he's going to spend time hyping a major announcement to have it turn out to be a financial transaction.
He got approval for SpaceX to have a commercial launch site in Texas. The Grasshooper is working flawlessly. They will now be dropping Superchargers in from orbit.
NASA has commissioned a Model S with Google's self driving software to go to MARS. They are tired of it taking weeks to get anywhere.
I like this thought: "My guess is he will be investing in new battery technology and/or super capacitors as a new company (with partners) or as part of Tesla. The Tesla factory has so much space it makes sense to start using part of it."
Now that would be exciting and a good use of his extra money, and making use of a factory that is currently only 20% utilized. If it is a secondary offering on Tesla, that would be bad. Given their high production rate, it is very possible that Tesla needs more cash now to make more money later, but the safe way to get that into Tesla now is with a loan. Elon or others could loan whatever working capital Tesla needs rather than do a dilutive share offering.
It's a puzzle. Putting money in the company would normally mean a secondary, not what we want to hear.
However if raising $200 million could bring gen III in 2 years instead of 4 perhaps.
My best bet would be that it has to do with the supercharger network. Tesla is going to spin off a separate company to run the surpercharger network. It will be capitalized at 100 million, and Elon is investing $50 million.
As a result, the nation wide supercharger network will be mostly complete by December 31st 2013, and by the way supercharging will be at 120 kw, resulting in 150 miles in 20 minutes.
The Google self driving car is also a tantalizing thought. Google may be far enough along to want to start making driverless cars. It is interesting that the head of the driverless car project at Google (Sebastian Thrun) is focusing more of his time on his on-line education company - maybe the project is that far ahead now?
Elaborating on my previous post...
A supercharger network largely complete by year end would be a giant boost to Model S sales, and the stock could skyrocket. Elon could make back the $50 million investment in a matter of days or weeks from the increase in the stock price on the shares he already owns. The rest of us get carried along for the ride. What a sweet prospect.
@ Kleist, shop - Battery industry is one of the hardest, slowest and capital intensive there is. They are obviously committed to the same battery design for Model X. Panasonic is a giant with factories already working at high efficiency and economies of scale.
@carlk - "future models" already used last fall
It cannot be only product enhancement alone, the tweet contains "put money" and "v major way". Of course that needs a motive / story, I am as curious as anyone to find out what it is!
I'm from the Netherlands and just signed up to this forum, while I follow all the Tesla related news for quite some time now and was triggered by Elon's tweet.
My guess is that he appreciates my interest in his company that much that he is willing to give me a Model S performance version for free. Sounds pretty exciting to me and fits his tweet as well, since it is his own money and he probably sais to himself: I should give that guy a Model S for free.
Seriously, I started thinking of two options:
-Pay back the government loan, though I can't really argue why that would be a smart decision other than is seems that this kind of loan gives rise to politically motivated arguments against Tesla that then can be avoided.
-Put his money in a joint venture between SolarCity and Tesla Motors to develop a nationwide (shorter term)/worldwide (longer term) supercharger network, thereby providing the energy for free to Tesla owners while licensing the technology in the long run to other companies doing electric cars. However, this would be a much stronger business case when the Supercharging network is proven to diminish range anxiety by ample proof.
So basically I came to the conclusion that I have no idea...;-)
C'mon people...you are over analyzing. Clearly when he says he is putting his money where his mouth is he means a sizeable wager with Broder is soon to be announced! :-)
He is paying Russia $25 million for a seat on a rocket to the ISS and then will return to earth on the Space X capsule after it brings supplies up.
There was a blog post detailing the rough strategy for the supercharger openings around the country. (Bad news for those of us along the eastern seaboard, actually.) Maybe this is about new supercharger stations, but it doesn't seem like it...
In addition to my previous comment:
I remember him saying in an interview he would come with a message about Superchargers, presumably providing the technology to use the full 120 kW they can provide.
Though, in that case I cannot really relate is to 'putting his money where his mouth is' and calling it a 'very major way'. I know Americans tend to like the use of superlatives, so I don't hope it will disappoint. I don't mean that offensive by the way, in case someone feels offended by this generalization ;-)
Elon has inked a deal w/Andrea Rossi to Install an Ecat in every Model S,
Thereby enabling unlimited mileage, charging while driving.
Five more superchargers to connect MA to FL on his dime. Tesla just delivered its 10000 vehicle and the company is seriously cash flow positive. Tesla is branching into the manufacturing of electric airplanes finance by iron man. Can't wait till Thursday but, so happy I have my MS so won't have to worry about much either way.
He's going to put a Model S on Mars!
I think it Coud be the next tesla Model car (z?) the one that is going to be at a lower price...
@Nicu.Mihalache - I agree, but did that stop Elon before?... he is building rockets.
Batteries are his weak spot - (a) it is 40% of the cars cost and he has little control over the cost, (b) no competitive advantage... anybody can arrange 18650 in a web and (c) his supply is vulnerable - if GM offers Panasonic 50 cents more he will be at the short end.
HA! GM offer anything for an EV. They'd need three years and 5 billion just to get the + and - symbols drawn correctly in the battery casing.
Don't think both the GenIII car as well as a major improvement in battery technology has to be expected.
Besides the fact that Elon put his timeframe for the GenIII at least at 3 or 4 years from now, I don't think he changed his mind on that. Since the Supercharger network is not in place all over the US, let alone Europe or Asia, and the same applying for the service center network, he does not have the right arguments to persuade people other than early adopters to buy his cars.
On the battery technology side, history has proven it is hard to have major breakthroughs on this, at least on the short term.
That's why I reduced my options to the payback of the US government loan, which I don't see as a smart decision, but it is in the realm of feasible options, and on a joint venture with SolarCity on developing the Supercharging network together. Though I have my doubts on the latter, I think it is the most likely of the options I was thinking of.
@Sudre_ - funny. Replace GM with VW or a Chinese Company... and assume they do not play nice.
My guess, he is starting his own version of gmac, basically a financing company which will offer purchase financing and leasing for Tesla vehicles. Would increase rate of MS orders and, well run, would be another profit stream for Musk.
Hes purchasing a prepaid service plan with unlimited ranger visits!
Maybe it's about the connectivity issue; maybe that'll be free too?